Westport Fuel Systems Inc.


WPRT

reported earnings per share of 3 cents for fourth-quarter 2020, surpassing the Zacks Consensus Estimate of a penny. The bottom line also improved from breakeven profit in the corresponding quarter of 2019 on the back of operational efficiency, higher investment income from the CWI joint venture and forex gains. Westport registered consolidated revenues of $83.9 million for the fourth quarter, up 13% year over year. The top line also outpaced the Zacks Consensus Estimate of $69.4 million.

Westport had cash and cash equivalents of $64.3 million on Dec 31, 2020, up from $46 million in the corresponding quarter of 2019. Long-term debt came in at $45.6 million as of Dec 30, 2020 compared with $35.3 million in the comparable period of 2019.

Westport is set to be included in the S&P/TSX Composite Index effective Mar 22, 2022. The company currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same industry include

Magna International


MGA

,

Meritor


MTOR

, and

American Axle & Manufacturing


AXL

, each carrying a Zacks Rank #1 (Strong Buy). You can see


the complete list of today’s Zacks #1 Rank stocks here

.

Operational Results

Original Equipment Manufacturer Segment

(OEM): Net sales of the segment soared 31.5% year over year to $58.8 million for the reported quarter, mainly on increase in sales volume in the HD OEM business and forex gains. The segment’s operating loss came in at $3 million, narrower than the loss of $6.1 million incurred in fourth-quarter 2019.

Independent Aftermarket Segment

(IAM): Net sales of the segment slid 15.2% year over year to $25.1 million for the December-end quarter on prevailing negative impact of the pandemic in Western Europe. The segment reported an operating income of $1.3 million, lower than the prior-year profit of $2.2 million.

CWI Joint Venture

(50%): This segment’s revenues totaled $48 million for the October-December period, down from the year-ago quarter’s $51.2 million due to lower engine sales. Operating income was $12.1 million, higher than $10 million recorded in the comparable year-ago period, thanks to lower operating costs and higher gross margins on the back of a favorable product mix.

Corporate Business Segment

: For the reported quarter, operating profit of the segment amounted to $0.9 million against operating loss of $1.6 million incurred in the year-earlier period.

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